Currently the Moving Picture Experts Group (MPEG) of the International Standardization Organization is attempting to establish a compressed signal standard or protocol for the transmission of video signals. There are two basic forms of video signal, interlace scanned signal and non-interlace scanned signal. Compression of interlace scanned video has advantages in that lesser bandwidth is required and both production and receiver equipment for compressing/decompressing interlace scanned signal can be manufactured at lower cost, than for non-interlaced scan signal. The television industry tends to favor a compressed video standard which is based on interlaced scanned signal. However, there are applications which almost demand non-interlaced scanned images, particularly in that segment of the computer community which process video images. The MPEG committee is desirous of satisfying both camps, that is establishing a standard which is useful to the greatest number of potential users. The present invention is directed to a compression system which provides compressed signal for the reproduction of both interlaced and non-interlaced scanned images without significantly increasing the compressed signal data rate over compressed interlaced scanned signal.